VERTICAL SOFTWARE, RICHES IN NICHES

Summary from the TLDR Founders newsletter

Vertical software companies focused on specific industries can be extremely capital-efficient and profitable, with durable long-term growth potential. While their total addressable market may initially seem limited, great management teams find ways to expand their opportunities over time. Valuation multiples for vertical software leaders can appear high but are often justified by their strong execution and ability to grow revenue and profits consistently.